USD/JPY hits fresh lows under 109.00 as Wall Street erases gains
|- Risk aversion during American session boosts Japanese yen across the board.
- US President Trump fails to boost optimism on trade speaking in NY.
The USD/JPY pair printed fresh lows during the American session as equity prices moved off highs in Wall Street. The pair continued to retreat after being unable to break above 109.30 and fell below 109.00.
It printed a fresh daily low at 108.91, slightly above yesterday’s low. As of writing, it is hovering around 109.00, posting modest losses for the day. The yen strengthened across the board during the American session and after US President Trump's speech. Trump did not point toward an agreement with China and said that Europe had set up 'terrible' barriers for the US.
Technical outlook
The USD/JPY is trading lower in range, with the risk skewed to the downside in the 4-hour chart, as the price remains below a flat 20 simple moving average while technical indicators head south within negative levels according to Valeria Bednarik, Chief Analyst at FXStreet.
“The downside potential seems limited, with an immediate support at 108.90, and the next one at 108.65. It will be below this last that the pair would have chances of declining further”, Bednarik added.
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